NOVA Lock Upon Payout (LUP)
In funded NOVA accounts, the Lock Upon Payout (LUP) model defines how your maximum trailing drawdown behaves after a payout.
Once a payout is approved, your drawdown will lock at the starting balance of the funded account.
From that moment forward, the drawdown no longer trails upward, regardless of future account growth.
Where LUP Applies
Account Stage | LUP |
Evaluation | Not applicable |
Funded | Applies after first payout |
How the Lock Upon Payout Works
Before your first payout:
The drawdown trails the highest equity
As profits increase, the breach level rises
After your payout is processed:
The drawdown locks at the funded starting balance
The breach level no longer trails upward
Future gains do not increase drawdown room
Example 1 — Moderate Withdrawal
Initial funded balance: $10,000
Balance after gains: $11,000
Payout request: $500
After payout:
Drawdown locks at $10,000
Remaining buffer = $500
The account will breach only if balance or equity drops below $10,000.
Example 2 — Large Withdrawal
Initial funded balance: $10,000
Balance after gains: $11,000
Payout request: $950
After payout:
Drawdown locks at $10,000
Remaining buffer = $50
This leaves minimal room before breaching the account.
Important Considerations
While traders may withdraw profits at any eligible payout window, risk exposure increases as buffer decreases.
We strongly recommend:
Leave a Profit Buffer
Withdrawing the full profit leaves little protection against normal market fluctuations.
Grow Before Withdrawing
- Building an additional profit cushion can improve account stability and longevity.
Why LUP Exists
The Lock Upon Payout model is designed to:
Protect funded capital
Secure trader payouts
Prevent excessive risk escalation
Encourage sustainable account growth
By locking drawdown after payouts, traders are incentivized to manage risk responsibly.
Key Clarifications
LUP activates after the first approved payout
Drawdown locks at the funded starting balance
Future profits do not increase drawdown room
Breach occurs if balance or equity drops below the locked level
LUP does not override Daily Loss Limit rules